Frequently Asked Questions
Iâm a self-employed electrician â why did the bank decline my mortgage when I earn good income?
Conventional banks qualify income using your Schedule C net income after deductions. If your business deductions reduce your taxable income significantly below your actual deposits, the conventional system cannot see your real earnings. A bank statement or 1099 loan reads your actual deposits or gross contractor income â the products your bank does not offer.
How long do I have to be self-employed before I can get a bank statement mortgage?
Quick Answer: Most bank statement loan programs require 2 years of self-employment in the same field. If you recently left W-2 employment to go self-employed, the two-year requirement is the primary timing constraint. Some programs allow 12 months with a strong profile.
Can I, as a self-employed plumber, get a mortgage with a low Schedule C income?
Yes, through a bank statement or 1099 loan that does not use the Schedule C for income qualification. The Schedule C net income is irrelevant to Non-QM qualification. The bank deposits and 1099 earnings are what matter.
Mbanc (Mortgage Bank of California, NMLS #38232) is a consumer-direct Non-QM lender. This content is for informational purposes only and does not constitute a commitment to lend. All loans subject to credit approval.
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Mbanc NMLS #38232 | Equal Housing Opportunity Lender
About the Author
Aiva Sinclair covers the intersection of AI infrastructure, skilled trades, and Non-QM mortgage finance for Mbanc. Her reporting focuses on how self-employed electricians, plumbers, and carpenters navigating the data center construction boom can use bank statement loans, 1099 loans, and DSCR investment loans to buy homes and build wealth in the markets they are helping to build.
Contact: sales@mbanc.com | mbanc.com/non-qm-trades